Image credit: shutterstock.com/g/Anuphone+Sakoolchai
You’ve been awarded a contract on a project that is being covered by Controlled Insurance Program (CIP), or more commonly known as a Wrap-Up. The Owner or General Contractor are requiring you to enroll into the Wrap program. You have your own corporate insurance. Do you need to enroll in the program?
The short answer is yes. While there is a limited list of trades that are usually excluded from a Wrap program, most trades are required to participate, making enrollment a requirement. You can always refer to the project’s Wrap manual for the excluded trades on that project. These excluded trades are typically:
- Hazardous materials remediation, removal and/or transport companies and their consultants
- Any subcontractor performing structural demolition which is the moving or relocating of load bearing beams, columns, or walls
- Architects, engineers, soil testing engineers, surveyors, and their consultants
- Vendors, suppliers, fabricators, material dealers, truckers, haulers, drivers, and other who merely transport, pickup, deliver, or carry materials, personnel, parts or equipment or any other items or persons to or from the project site
- Subcontractors, and any of their respective sub-subcontractors, who do not perform any actual labor on the project site
- Building implosion subcontractors of any tier, or subcontractors of any tier involved with blasting or the use of explosives
- Any subcontractor of any tier involved with Exterior Insulation Finishing Systems (EIFS)
The Wrap-Up program is specific to on-site coverage only. Your corporate insurance will still need to provide coverage for your off-site operations and any additional coverages not included in the Wrap-Up (ex. auto, professional, etc.).
As a subcontractor there are quite a few benefits to being enrolled in a Wrap-Up program which include:
Prevents Litigation
When a claim is filed there is often “finger pointing” and the “blame game.” Being enrolled in a Wrap-Up means the same coverage is provided to everyone. This alleviates any conflict on who is at fault and which insurance carrier is responsible for paying the claim.
Coverage Limits
Whether you are a major corporation or a self-owned business, the Wrap-Up gives all enrolled parties the same coverage limits that might otherwise be too expensive for some businesses.
Credits/Deductions
Depending on the Wrap-Up program it is either paid for by the Owner or the General Contractor. The Sponsor (whoever pays for the Wrap-Up) usually requires subcontractors to bid gross. This means your bid needs to include your insurance costs for Worker’s Comp, General Liability, and Excess. Once you are enrolled in the program, you will receive a COI showing your on-site coverage. Make sure you provide a copy of the COI to your Broker. This way, during your corporate insurance audit, your most insurance carriers will provide a premium credit to you for when you were enrolled in the Wrap-Up program.
If you have questions regarding enrollment into a TSIB Wrap program, contact us today and speak with one of our Wrap Administrators.
TSIB’s Risk Consultants are currently servicing the following locations:
East Coast: New York City, NY; Bergen County, NJ; Fairfield County, CT; Philadelphia, PA
Texas: Austin, San Antonio, Houston, Dallas
California: Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County
